For those who remember the early days of cryptocurrencies, there were never as many tokens as there are today.
There were pioneers like Bitcoin (Bitcoin -0.10%) When ethereum (ETH -0.21%), still dominates the headlines today.And of course there were batches of altcoins that probably got more attention than they do now because they were part of the first altcoins at the time. litecoin (LTC -0.62%)given the state of the industry this year, it is still alive and doing just as well as other cryptocurrencies.
Litecoin was born in 2011 and, despite a sharp drop this year, has a market capitalization of nearly $4.7 billion, making it the 14th largest cryptocurrency today. If in 2016 he invested $500 in Litecoin, his current investment is:
Litecoin was developed by former Google engineer Charles Lee as a response to Bitcoin. When Lee started the network and coin, he called it a “lightweight version of Bitcoin.” This code is also a modified version of Bitcoin’s open source code.
This network has some similarities to Bitcoin. For example, Litecoin still operates on a Proof of Work (PoW) consensus mechanism, where miners on the network try to solve the cryptographic puzzle as quickly as possible in order to have a chance to validate the transactions within the block. In return for their services, selected miners will be rewarded in Litecoin. However, Litecoin does not use his PoW consensus mechanism which is more energy intensive than Bitcoin.
Also, like Bitcoin, the supply of Litecoin is limited. Litecoin has 84 million compared to Bitcoin’s 21 million. About 70 million Litecoin coins have already been issued, but the last of his Litecoin coins is expected not to be issued for another 100 years.
One of the major differences between Litecoin and Bitcoin is that Bitcoin can only handle 54 transactions per second (TPS) while Litecoin can handle 54 transactions. A lot of TPS if you can scale and avoid congestion that slows down the network and increases usage costs. for example, visaThe world’s largest payment rail, can handle 24,000 TPS.
In terms of price action, Litecoin is much less valuable than Bitcoin, but like many cryptocurrencies, it has moved heavily in parallel with the world’s most valuable crypto.
If you invested $500 in Litecoin in 2016…
I think a few years ago Litecoin was a much bigger deal than it is today. There are currently many networks that can handle more TPS than Litecoin. That being said, as one of the older cryptocurrencies, I think Litecoin will continue to get a lot of respect for its legitimacy. FTX.
If you invested $500 in Litecoin in 2016, you’re doing pretty well. Litecoin traded at just $3.86 at the end of November 2016.
Currently, the token is trading above $65. This means that investors who picked up the token in late 2016 saw a return of around 1,592% versus 72% in the S&P 500 index. So his $500 investment back then is worth about $8,460 today.
Bram Berkowitz has positions in Bitcoin, Ethereum and Litecoin. The Motley Fool has positions in and recommends Bitcoin, Ethereum and Visa. The Motley Fool’s U.S. headquarters has a disclosure policy.